Trying to choose between a Kaanapali or Wailea condo for vacation‑rental income? You are not alone. Both are world‑class resort areas, yet they perform differently when it comes to nightly rates, occupancy, and net returns. If you want clarity that goes beyond postcard views, you need to read the right revenue signals.
In this guide, you will learn how demand, guest mix, rate resilience, costs, and regulations shape income potential in Kaanapali and Wailea. You will also get a practical checklist to evaluate specific buildings and units before you write an offer. Let’s dive in.
Kaanapali vs Wailea at a glance
Kaanapali on West Maui offers a larger concentration of condo resorts, many built from the 1960s through the 1990s. You see a wider range of price points and a strong condo model with kitchens and multi‑bed layouts that attract value‑oriented vacationers. Beach proximity and easy access to activities help drive volume.
Wailea on South Maui is a master‑planned luxury environment with newer condos and upscale amenities. Inventory is smaller, and per‑unit purchase prices are typically higher. Guests trend toward luxury leisure and higher discretionary spend.
Island‑level visitor patterns are leisure‑driven with repeat guests and clear peak seasons. For big‑picture context, review the latest arrivals and spending trends from the Hawaii Tourism Authority and statewide indicators from DBEDT.
What the 2023 wildfires mean for returns
The August 2023 wildfires devastated Lahaina and affected parts of West Maui. Kaanapali did not see the same physical damage as Lahaina’s core, but visitor demand, infrastructure, and local operations were disrupted. Recovery efforts and insurance market changes have created short‑term volatility and higher uncertainty for some properties.
Wailea in South Maui was far less physically affected. While the island saw softer demand immediately after the fires, Wailea’s luxury positioning and perceived stability helped it recover rate strength more quickly.
If you are underwriting income, this matters. West Maui owners may see more variability in the near term and should price in potential insurance and regulatory shifts. To track ongoing recovery context and policy updates, monitor the Hawaii Tourism Authority and Maui County announcements.
Demand patterns that shape revenue
Guest mix and rate potential
- Wailea typically attracts luxury leisure, couples, weddings, and higher‑spend visitors. This supports higher average daily rates (ADR) and a stronger RevPAR base.
- Kaanapali draws a broader mix, including families and multigenerational groups. Occupancy can be competitive because of price flexibility, but average rates are usually lower than Wailea.
Lead times and seasonality
- Wailea’s luxury demand tends to book farther in advance for peak periods and is less discount‑sensitive during holidays and winter. That helps protect rate integrity.
- Kaanapali often shows more pronounced seasonality. In shoulder periods, operators may rely on promotions to keep occupancy up.
- Both markets peak in winter and summer, with variable shoulder months in spring and fall.
Where bookings come from
- Wailea tends to see more direct and travel‑advisor bookings, plus repeat guests. This reduces reliance on deep‑discount channels.
- Kaanapali often leans more on online travel agencies for volume. Those fees and commissions lower net income if not managed carefully.
Rate resilience in real life
Rate resilience is the ability to hold ADR and RevPAR when demand softens. Markets with affluent guests, smaller competing inventory, and strong brand recognition usually recover faster after shocks.
- Wailea’s higher baseline ADR, luxury positioning, and smaller inventory typically support quicker rate recovery after island‑level events.
- Kaanapali’s broad inventory and price‑sensitive demand can pressure rates in slower periods, although occupancy can remain stable when priced appropriately.
How to read ADR, occupancy, and RevPAR
Before you compare properties, pull submarket and building‑level data:
- ADR trend for 12 to 24 months and a 5‑year view
- Occupancy trend with peak and shoulder month comparisons
- RevPAR trend to see if rate gains are sustained alongside occupancy
- Booking window, cancellation rate, and average length of stay
- Channel mix, especially the share of OTA bookings
You can source short‑term rental data from tools like AirDNA MarketMinder for condo‑level performance and hotel benchmarks from STR. For island‑wide visitor patterns, use the Hawaii Tourism Authority.
Costs, regulation, and risks you must underwrite
HOA dues and management fees
Luxury Wailea condos often carry higher HOA dues that fund amenities and reserves. Many older Kaanapali buildings may have lower dues but can require more frequent renovation to compete on rate. Professional rental management is usually essential, and fees vary by positioning and service level.
Insurance and taxes
Insurance markets tightened after 2023, with higher premiums and deductibles in some areas, especially in parts of West Maui and older buildings. Model scenarios with elevated premiums. Property taxes and Hawai‘i’s transient accommodations taxes apply; confirm the latest rates and any county assessments.
Short‑term rental rules
Maui County has evolving policies for short‑term rentals. Licensing, compliance, and building‑level rules matter just as much as county rules. Always verify the property’s current STR status and any pending ordinances. Use the Maui County site for planning, permitting, and licensing updates before you buy.
Match your goals to the right area
Your goals should drive your location choice. Here is a simple way to align.
If you want to maximize cash flow
- Look at Kaanapali units that sell at lower price points relative to achievable ADR.
- Focus on buildings with stable HOAs, competitive finishes, and efficient operations.
- Use a disciplined pricing and channel strategy to maintain occupancy in shoulder months.
If you prefer appreciation and lower hassle
- Consider Wailea’s luxury condos that support premium ADR with fewer nights booked.
- Accept higher HOA dues and management costs in exchange for brand strength and rate resilience.
- Prioritize properties with strong direct and repeat demand.
If you plan for personal use
- Wailea can make sense if you want fewer rental nights and a high‑quality owner experience while still achieving strong per‑night economics.
- Kaanapali can work if you need frequent owner use and plan to backfill with OTA demand when you are not in residence.
Due diligence checklist you can use
Gather these items for any condo you are considering, then compare Kaanapali and Wailea options side by side.
- Historic performance: monthly ADR, occupancy, and RevPAR for at least 24 months, plus a 3 to 5‑year trend if available
- Seasonality map: peak and shoulder performance, and how rates held during softer months
- Demand mix: booking window, cancellation rate, average length of stay, and share of repeat guests
- Channels and costs: OTA percentage, direct bookings, management fees, and cleaning schedules
- HOA health: budget, reserve study, recent and upcoming assessments, and rental rules
- Insurance: premium levels, deductibles, and any wildfire or flood exposure notes
- STR compliance: license status and any area‑specific or building rules
- Capex: recent renovations and realistic timelines for replacements to keep rates competitive
For current demand and visitor context, consult the Hawaii Tourism Authority and DBEDT. For STR benchmarks and channel behavior, use AirDNA and hotel‑side context from STR.
Next steps to get the numbers that matter
- Pull the latest ADR, occupancy, and RevPAR for Kaanapali and Wailea from AirDNA and STR. Filter by similar bedroom counts and quality levels to make a fair comparison.
- Request P&Ls, HOA budgets, and reserve studies from representative buildings. Confirm STR license status through Maui County.
- Track recovery and policy updates through the Hawaii Tourism Authority and local reporting.
When you use the right data and align it with your goals, the choice between Kaanapali and Wailea becomes clear. One is not universally better. The “right” answer is the one that fits your usage needs, capital plan, and risk tolerance while delivering stable net income.
Ready to compare specific properties and model revenue with local insight and integrated rental operations? Connect with Unknown Company. Make Maui Your Life — Start Your Search.
FAQs
What is the main income difference between Kaanapali and Wailea condos?
- Wailea usually supports higher ADR due to luxury positioning, while Kaanapali often delivers competitive occupancy at broader price points, so RevPAR comparisons depend on the building and unit quality.
How did the 2023 wildfires affect Kaanapali vacation rentals?
- West Maui experienced demand disruption and operational impacts, and owners should underwrite potential insurance and regulatory changes while monitoring recovery updates from the Hawaii Tourism Authority and Maui County.
Which data sources should I use to compare performance by area?
- Use AirDNA for short‑term rental ADR, occupancy, and RevPAR, STR for hotel benchmarks, and HTA and DBEDT for island‑level visitor and economic trends.
What expenses most affect net rental income on Maui?
- Major drivers include HOA dues, management fees, cleaning and turnover costs, insurance, utilities, property tax, and Hawai‘i transient accommodations taxes, plus periodic capital replacements or assessments.
Are short‑term rentals allowed in both Kaanapali and Wailea?
- Many buildings in both areas allow STRs, but rules vary by county ordinance and HOA; verify current license status and building policies through Maui County before you buy.
